2 Cryptocurrencies That Could Dwarf Shiba Inu
The Shiba Inu (SHIB -0.14%) cryptocurrency has come a long way in a short time. What started as a pure joke two years ago skyrocketed in 2021 and many investors also expect it to post massive gains in the future. According to a price prediction from the crypto exchange Changelly, based on analysis of social media chatter, the average Shiba Inu owner expects the coin’s price to double in 2023 and quadruple by 2025.
I’m not here to evaluate the accuracy of Changelly’s price predictions for Shiba Inu, but there are several cryptocurrencies on the market that should do even better over the next couple of years. In particular, I like what I see in Algorand (ALGO 2.33%) and Polkadot (DOT -0.91%) today. Let’s take a closer look at these high-quality crypto investments and see if they’re a good fit for your portfolio.
Algorand: Like Ethereum on steroids
Algorand is a smart contracts platform for decentralized applications, similar to Ethereum. This blockchain network was built with speed and low transaction fees in mind. Algorand’s fees run at roughly $0.0004 per transaction right now, compared to Ethereum’s median transaction fee of $0.70. The network has managed an average of 1.1 million transactions per day this week, also ahead of Ethereum’s 330,000 transactions executed per day. And this is considering the new and improved Ethereum structure here, not the even slower and more expensive version that was in force until The Merge on Sept. 15.
Despite Algorand’s multiple advantages, the Ethereum platform has attracted a much larger developer community. Time is an important factor here. Ethereum has been around since 2015 and the first Algorand transaction took place in 2019, making the original smart contracts platform nearly twice as old as the quicker challenger.
However, Algorand is currently working on a bridge protocol that will make its platform fully compatible with code developed for Ethereum. This tool will not erase Ethereum’s advantage, but it will give app makers another platform choice that can be adopted with minimal coding effort, letting the two systems compete on a level playing field.
Furthermore, Ethereum just reduced its carbon footprint by 99.95%, but Algorand is actually carbon-negative by design. That’s a big selling point for projects paying close attention to their environmental impact.
And Algorand doesn’t have to beat Ethereum in order to be a successful investment. Its market value stands at just $2.7 billion today, essentially a rounding error compared to Ethereum’s footprint of $163 billion. If Algorand can earn just one-tenth of Ethereum’s developer attention in the long run, the digital coin should outperform Ethereum by a sixfold ratio. This growth opportunity is far more exciting than Shiba Inu’s limited usability.
Polkadot: The lifeblood of the Web3.0 redesign
The Polkadot blockchain network takes a different approach to smart contracts and digital transactions. Rather than trying to be the best at one or more of these functions, Polkadot was designed to connect other crypto projects to each other. This way, a Polkadot developer can take full advantage of the best qualities in each digital coin while avoiding their downsides.
This unique network design is paired with an advanced ecosystem. Through Polkadot’s multilevel system of parachain auctions and crowdloans, the platform gives direct financial support to innovators and their projects.
Polkadot’s revolutionary plan of attack makes sense when you consider the network’s history and goals. It was created by Ethereum co-founder Gavin Wood and the Web3 Foundation. Long story short, Web3 is a radical redesign of the internet as we know it, and this vision of a blockchain-based future was designed around the Polkadot network.
I’ll concede that Polkadot might not double in price next year or quadruple by 2025, since it may take a few years to get the Web3.0 sea change going. However, as a crucial component of the next-generation internet, Polkadot’s long-term growth prospects are enormous. If Polkadot isn’t worth several hundred billion in 10 years — up from $7.4 billion right now — I’ll have to buy a hat and eat it with a pinch of basil. I can’t say the same for Shiba Inu, which I expect to fade away over time.
Anders Bylund has positions in Algorand, Ethereum, and Polkadot. The Motley Fool has positions in and recommends Ethereum. The Motley Fool has a disclosure policy.